Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

What is the significance of centralised cash reserves with Central Bank?

5% fall in the price of a good raises its demand from 300 units to 318 units. Calculate its Price Elasticity of Demand.

What is the reaction of AP, when:

1. MP is more than AP.
2. MP is less than AP.
3. MP is equal to AP.

Giving reason, classify the into normal resident of India or not.
Foreign tourists visiting India for a month to see the Taj Mahal.

Explain the condition of consumer’s equilibrium with the help of utility analysis.

Giving reason, classify the into stock or flow.
Foreign Remittances (In flow of money).

Give two examples of micro economic studies.

Giving reason, classify the into intermediate or final goods.
Wheat used by households.

There is an increase in investment of ₹ 100 crore in an economy. Marginal Propensity to Consume is 1. What can you say about total increase in the income? Calculate.

Explain how rise in income of a consumer affects the demand of a good. Give example.

OR

Explain the effect of rise in a income of a consumer on his demand for a good. Use diagram.

OR

Explain the effects of increase in the income of the buyer of the good 'X' on the demand of X. Use diagram.